A store helper selling Liquefied Petroleum Gas (LPG) changes the LPG prices on their price board in Paco, Manila on March 25, 2026.
The STAR / Edd Gumban
MANILA, Philippines — President Ferdinand Marcos Jr. has approved a three-month suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene to cushion the impact of rising fuel prices on Filipino households.
“The excise taxes on LPG, except when used as raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are hereby fully suspended for a period of three months from effectivity of this Order,” President Marcos said in issuing Executive Order No. 114 on April 16.
The order was issued following the recommendation of the Development Budget Coordination Committee (DBCC), citing rising global oil prices.
Under the order, the suspension will undergo monthly review, with the DBCC tasked to recommend whether it should be extended, modified, or lifted.
Excise tax rates will automatically revert to levels set under the National Internal Revenue Code of 1997 once market conditions improve or after the three-month period lapses.
The EO provides that tax rates will return to previous levels if the one-month average Dubai crude oil price, based on the Mean of Platts Singapore, falls below $80 per barrel, as certified by the Department of Energy (DOE).
Data from the DOE showed that the 30-day average Dubai crude price reached $93.71 per barrel as of April 10, exceeding the threshold for tax suspension.
The DOE and the Department of Finance, through the Bureau of Internal Revenue and the Bureau of Customs, were also directed to conduct an inventory of LPG and kerosene stocks upon the effectivity of the order.
They are also required to submit monthly reports to Congress detailing the volume and declared value of the covered petroleum products.
Malacañang said the tax suspension is expected to cut LPG prices by P3.36 per kilogram, or about P37 per tank and reduce kerosene prices by P5.60 per liter.
Marcos earlier said the move seeks to provide immediate relief to consumers grappling with higher fuel costs during the ongoing energy emergency.
The president’s authority to suspend excise taxes is based on Republic Act No. 12316, which allows temporary adjustments when global oil prices breach a set threshold.
https://www.philstar.com/headlines/2026/04/18/2521833/marcos-suspends-lpg-kerosene-excise-taxes-3-months
